Marcello Spinelli: Thank you, Daniel, for the questions. So firstly, just to reinforce, our long-term view remains intact about premium. So I think the capitalization is a trend Energy efficiency is a necessity. We need high-grade ores to decrease the impact of CO2 in blast furnaces and we need high-grade ores in a glomerated form to support direct reduction route. So this is our main strategy, long-term strategy, and we strongly believe on that. In short term, let’s split this in 3. So the fourth point, pellets doing really well. So we have high premiums for pellets and this is related to this blooming of direct reduction that is already going on in the Middle East and the U.S. The second one is related to low alumina. So that’s another trend.
Our competitors are increasing the alumina, and we are taking advantage of how our low alumina products. And regarding the Carajas, the high-grade ores, we always say that we have premiums when we need to save energy. So the cost of energy side, that’s not the case today, coke is in a low level. Or if you need more efficiency to increase the production, increase the volumes to support the market. So that’s the main point here today in China. We have a strong market in a transition mode. So minimizing cost is the sense today. So we are also taking advantage of that. So we are selling — as we have a flexible supply chain, we are selling some high silicas with a lower discount today. And we are adjusting our supply chain to blend and have the low aluminum premium.
But what we see is that transition moment that’s the longest period of low margins in China, only comparable to 2015. After — in that moment in 2015, we had the supply side reform. We don’t expect this in China today, but what we believe that we have a strong support from the Chinese government to keep their goals in GDP and GDP per capital and that’s an important message that came this week when we had the announcement of the $1 trillion to support the infrastructure stimulus. So that will support that transition, and we believe that, that will be better pricing to that supports better margin, that supports a better premium for our high grade ore that Carajas. So that’s the figure we have short term, focus on minimizing costs but a transition for next year to rebalance the market in terms of price of steel in China.
Operator: Our next question is from Rafael Barcellos, Santander.
Rafael Barcellos: My first question is about briquettes. So Vale has already started the commissioning task of the first 2 iron ore briquette plants in Tubarão right? So I just would like to understand how these operations are evolving? And when do you expect to reach the combined run rate production of 6 million tonnes? And the second question is about the Brucutu complex. I mean after the return of the Torto dam, how operations are evolving in terms of mix of products and volumes? And also, could you confirm when you’ll be able to capture the full benefit of Torto dam? If it will be in the 4Q or more to early next year?
Carlos Medeiros: Rafael, this is Carlos Medeiros. Thank you for questions. Regarding the briquettes, we are now — as we commented during the presentation, commissioning the first line and addressing the technical problems. And so far, we have not found anything unexpected. Everything is coming according to plan. So we our expectation is to move into more a start-up in the beginning of November. And then — and from that point start, we will start ramping up this line. Regarding the second line, as also mentioned during the presentation, we will start commissioning it during Q2 next year and after that ramping up. So we should be in a position to have the full capacity in place sometime in the second half of next year approximately.
Regarding the Brucutu line is we have 3 lines in our processing plants up and running after the Torto dam. And we should continue until we have licenses for our waste piles to be implemented and then we’ll be in a position to move to — away from 3 lines up to 5 lines. So that’s the outlook. And this won’t happen before 2026.
